HOPE NOW has released data for the second quarter of 2014, which shows that approximately 421,000 homeowners received non-foreclosure solutions from mortgage servicers between the months of April and June. Permanent loan modifications totaled approximately 116,000 and short sales totaled 33,000. Other solutions including repayment plans, deeds in lieu, other retention plans and liquidation plans made up the rest of the total number. Foreclosure sales totaled approximately 115,000 for the quarter, representing the lowest quarterly total since HOPE NOW began tracking data in 2007.
Of the 116,000 loan modifications completed for the second quarter of 2014, about 82,000 homeowners received proprietary loan modifications and 34,400 homeowners received loan modifications completed under the Home Affordable Modification Program (HAMP).
For Q2 2014, the combination of total loan modifications, short sales, deeds in lieu, workout plans and other solutions outpaced foreclosure sales by a margin of almost four to one (approximately 421,000 solutions vs. 115,000 foreclosure sales).
Total Loan Modifications since 2007 at Approximately 7.1 Million
Since 2007, the mortgage industry has completed 7.1 million total permanent loan modifications for homeowners. Of those loan modifications, more than 5.7 million were proprietary programs and 1,387,321 were completed under HAMP.
Q2 2014 vs. Q1 2014 – Foreclosure Sales Decline Nine Percent, Starts Down Eight Percent
During the second quarter of 2014, there were an estimated 115,000 foreclosure sales, compared to 126,000 during the previous quarter – a decline of close to nine percent. This is the lowest quarterly number since HOPE NOW began reporting data in 2007. Foreclosure starts also declined, with approximately 200,000 reported for Q2 2014 vs. 217,000 reported for Q1 2014, a decline of almost eight percent.
Here are some other key metrics for Q2 2014 vs. Q1 2014:
►Loan modifications were approximately 116,000 for Q2 2014 vs. 133,000 in Q1 2014, a decline of approximately 13 percent.
►Short sales completed in Q2 2014 were approximately 33,000 vs. 34,000 for Q1 2014 – a decline of three percent.
Q2 2014 vs. Q2 2013 – Foreclosure Sales Down 27 Percent
The 114,000 foreclosure sales in the second quarter of 2014 compares to an estimated 158,000 completed during the second quarter of 2013. This represents a continuing trend of declining foreclosure sales quarter to quarter.
Here are some other key metrics for Q2 2014 vs. Q2 2013:
►Loan mods for Q2 2014 were approximately 116,000 vs. 204,000 for Q2 2013 – a decline of 43 percent.
►Foreclosure starts for Q2 2014 were approximately 200,000 vs. 323,000 for Q2 2013 – a decline of 38 percent. Note that this tracks with the decline in loan modifications.
►Short sales completed for Q2 2014 were approximately 33,000 vs. 81,000 for Q2 2013 – a decline of 60 percent.
►Deeds in lieu for Q2 2014 were approximately 7,500 - virtually unchanged from Q2 2013 (7,800).
June 2014 Key Data Points
For the month of June, there were an estimated 38,000 permanent loan modifications completed. Of that total, approximately 28,000 were proprietary loan modifications and 10,813 were completed under HAMP. Total modifications for the month represented a six percent increase from the previous month (36,000). Of the proprietary loan modifications completed in June 2014, approximately 63 percent (18,000) had reduced monthly principal and interest payments of more than 10 percent.
Other key metrics for the month of June 2014 compared to May 2014:
►Foreclosure sales were estimated at 37,000 in June vs. 38,000 in May – unchanged for the month.
►Foreclosure starts were estimated at 69,000 in June vs. 67,000 in May – an increase of four percent.
►Short sales completed were approximately 7,500 in June vs. 7,400 in May – unchanged for the month.
►Delinquencies of 60+ days were approximately 1.89 million in June, compared to 1.87 million in May, unchanged for the month. (Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the Q2 2014).